Illinois Senior-Living Default Spurs Bondholders to Hire Adviser.

Investors holding $150 million of municipal bonds issued for an Illinois senior-living operator have hired a financial adviser after the non-profit defaulted on a separate series of obligations. The majority holders of the non-rated debt sold in 2019 hired FTI Consulting, Inc. to advise on potential long-term forbearance or debt restructuring. The hiring came after the non-profit failed to make an August 1 payment on about $25 million of floating-rate debt. The health-care sector has been heavily impacted by the pandemic, with over 8% of outstanding bonds for senior-living facilities in default. Invesco Ltd. is the largest owner of the bonds, holding about $73 million. The 2049 maturity of the $150 million borrowing last traded at an average of about 67 cents on the dollar. Lutheran Life failed to meet its debt-service coverage requirements for the three quarters ending March 31, and about 80% of its units were occupied at the end of March. The CEO of Lutheran Life was unavailable for comment. [Extracted from the article]